Paying your Self-Assessment Tax liability
HM Revenue and Customs have announced that with effect from 13 January 2018, they will no longer be accepting payment by personal credit cards, although you will still be able to make your tax payment using a debit or corporate credit card.
In view of this, if you were planning to use your credit card to pay your Self-Assessment tax liability becoming due for payment on 31 January 2018, you may wish to make this payment before the changes occur on 13 January 2018.
This means if you have not already completed your 2017 Tax Return and established any balancing payment of tax due for 2016/17, or any first payment on account towards your 2017/18 tax liability, both of which become due for payment on 31 January 2018, then you may wish to prepare your 2017 Tax Return ahead of 13 January 2018, to enable you time to still make these tax payments by credit card.
The change is being implemented by HMRC to coincide with the EU Payment Service Directive 2 which comes into effect on 13 January 2018 and prohibits merchants (including HMRC) from recharging the fees Banks charge for processing credit card payments back to its customers.
Other tax payments are also affected
Please note this change affects all tax payments you make to HMRC, not just Self-Assessment payments, therefore, this includes payment of VAT, and PAYE (including CIS) payments.
Alternative payment methods, remain as before:
• online or telephone banking (Faster Payments)
• Debit/Corporate Credit card online or by telephone
• at your bank or building society
• at the Post Office. *Although please note you will no longer be able to pay your Self-Assessment tax liability at a Post Office after 15 December 2017 due to the withdrawal of the Post Office Transcash service.
• Cheque Posted to HMRC (Self -Assessment)
Please see the link below for further details on how to pay your Self-Assessment tax liability, which includes details of the deadline by which your payment must reach HMRC to avoid a late payment penalty.
Alternatively, please contact us for further information.